Quite frankly I lean more toward flipping because I enjoy the process of seeing something transform (though that may change when doing it for money) and also because of the potential for higher returns.

Sounds like from your description though you're leaning towards the people living there being the scam artists.

I still don't have a clear picture of exactly how I want to invest but I am leaning towards rehabbing rental homes.  

Tough to say, but I lean towards no.

I'm leaning more toward putting a small laundromat in or putting in a few walls and doors and renting out storage space.

Both replies support the direction I am leaning, but it just helps to have others' opinion of my background and therefore how I am going to proceed. 

There are locales in Texas that have appreciated significantly in the last few years.The cash flow on the property looks at best lean. 

I'm leaning towards a slow flip, live in it and fix it if the deal makes sense.

Recently i have been leaning towards a 4 unit for the reasons you have just listed and thanks for the double analysis tip will definitely help keep things organized for me.

But I'm definitely leaning heavily towards renting for a while while doing my diligence.On my Sonoma property, highest and best use would be something light commercial like a tasting room.